CITY OFFICE REIT INC (CIO)
US1785871013 - REIT
CIO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 126 industry peers in the Diversified REITs industry. CIO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CIO is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CIO had negative earnings in the past year.
In the past year CIO had a positive cash flow from operations.
In multiple years CIO reported negative net income over the last 5 years.
In the past 5 years CIO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -0.67%, CIO is not doing good in the industry: 65.04% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -1.31%, CIO is doing worse than 63.41% of the companies in the same industry.
CIO's Return On Invested Capital of 1.68% is on the low side compared to the rest of the industry. CIO is outperformed by 72.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CIO is in line with the industry average of 2.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.67% | ||
| ROE | -1.31% | ||
| ROIC | 1.68% |
ROA(3y)9.91%
ROA(5y)5.8%
ROE(3y)18.25%
ROE(5y)10.6%
ROIC(3y)1.74%
ROIC(5y)1.87%
1.3 Margins
The Operating Margin of CIO (17.46%) is worse than 60.98% of its industry peers.
CIO's Operating Margin has improved in the last couple of years.
CIO has a Gross Margin of 60.92%. This is in the lower half of the industry: CIO underperforms 69.92% of its industry peers.
CIO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.46% | ||
| PM (TTM) | N/A | ||
| GM | 60.92% |
OM growth 3Y-3.76%
OM growth 5Y3.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.5%
GM growth 5Y-0.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CIO is destroying value.
CIO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CIO has been increased compared to 5 years ago.
The debt/assets ratio for CIO has remained at the same level compared to a year ago.
2.2 Solvency
CIO has an Altman-Z score of 0.58. This is a bad value and indicates that CIO is not financially healthy and even has some risk of bankruptcy.
CIO has a Altman-Z score (0.58) which is comparable to the rest of the industry.
The Debt to FCF ratio of CIO is 27.13, which is on the high side as it means it would take CIO, 27.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CIO (27.13) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.87 indicates that CIO is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.87, CIO is doing good in the industry, outperforming 64.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 27.13 | ||
| Altman-Z | 0.58 |
ROIC/WACC0.28
WACC6.09%
2.3 Liquidity
CIO has a Current Ratio of 2.22. This indicates that CIO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.22, CIO belongs to the best of the industry, outperforming 82.11% of the companies in the same industry.
CIO has a Quick Ratio of 2.22. This indicates that CIO is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CIO (2.22) is better than 82.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.22 |
3. Growth
3.1 Past
CIO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -247.06%.
The Revenue has decreased by -0.77% in the past year.
Measured over the past years, CIO shows a small growth in Revenue. The Revenue has been growing by 6.70% on average per year.
EPS 1Y (TTM)-247.06%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q69.44%
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y3.66%
Revenue growth 5Y6.7%
Revenue growth Q2Q-0.65%
3.2 Future
Based on estimates for the next years, CIO will show a decrease in Earnings Per Share. The EPS will decrease by -7.79% on average per year.
The Revenue is expected to decrease by -0.28% on average over the next years.
EPS Next Y-120.18%
EPS Next 2Y-41.41%
EPS Next 3Y-7.79%
EPS Next 5YN/A
Revenue Next Year-3.06%
Revenue Next 2Y-0.96%
Revenue Next 3Y-0.28%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for CIO. In the last year negative earnings were reported.
Also next year CIO is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIO indicates a rather cheap valuation: CIO is cheaper than 93.50% of the companies listed in the same industry.
CIO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CIO is cheaper than 93.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.86 | ||
| EV/EBITDA | 8.83 |
4.3 Compensation for Growth
CIO's earnings are expected to decrease with -7.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.41%
EPS Next 3Y-7.79%
5. Dividend
5.1 Amount
CIO has a Yearly Dividend Yield of 8.40%, which is a nice return.
Compared to an average industry Dividend Yield of 5.88, CIO pays a better dividend. On top of this CIO pays more dividend than 83.74% of the companies listed in the same industry.
CIO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.4% |
5.2 History
The dividend of CIO decreases each year by -6.78%.
CIO has been paying a dividend for at least 10 years, so it has a reliable track record.
CIO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.78%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of CIO are negative and hence is the payout ratio. CIO will probably not be able to sustain this dividend level.
CIO's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-310.04%
EPS Next 2Y-41.41%
EPS Next 3Y-7.79%
CITY OFFICE REIT INC
NYSE:CIO (5/3/2024, 7:04:00 PM)
After market: 4.84 0 (0%)4.84
+0.08 (+1.68%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap194.33M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.4% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.67% | ||
| ROE | -1.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.46% | ||
| PM (TTM) | N/A | ||
| GM | 60.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-247.06%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-120.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y3.66%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y